APEC leaders move on trade and security

The Asia-Pacific Economic Cooperation (APEC) held its 11th Leaders’ Summit last 20-21 October 2003 in Bangkok, Thailand.

At the meeting, APEC leaders agreed to strengthen their partnership not only to liberalize and facilitate regional trade and investment, but also to protect their peoples and societies against threats to security, while preparing them to benefit fully from free and open trade.

More specifically, the leaders expressed support for the primacy of the multilateral trading system and agreed that the Doha Development Agenda (DDA) offers the potential for real gains for all economies, particularly developing economies, in the areas of agricultural reform, improved market access for goods and services, and clarification and improvement of trade disciplines.

Subsequently, the leaders lent their strong support for continuing the work done at the Cancun Ministerial Conference to advance the DDA. They, however, stressed that they would continue to press for an ambitious and balanced outcome to the DDA, reiterating that the development dimension should be at its core. Related to this, they committed to negotiate for the abolition of all forms of agricultural export subsidies, unjustifiable export prohibitions and restrictions.

To enhance the security of each nation, APEC leaders committed to fully dismantle without delay transnational terrorist groups that threaten the APEC economies, eliminate the severe and growing danger posed by the proliferation of weapons of mass destruction and their means of delivery by strengthening international non-proliferation regimes, adopt and enforce effective export controls, and take other legitimate and appropriate measures against proliferation.

The leaders also committed to increase and better coordinate each nation’s counter-terrorism activities, where appropriate, through effective collaboration, technical assistance and capacity building. They also promised better cooperation between APEC’s Counter Terrorism Task Force, the Counter Terrorism Action Group (CTAG) of the G-8, the United Nations Security Council Counter Terrorism Committee, and other relevant international, regional, and functional organizations.

The member heads of state also committed to implement the APEC Action Plan on SARS and the Health Security Initiative to help APEC prevent and respond to regional health threats, including naturally-occurring infectious disease and bio-terrorism. The group also welcomed the establishment by Singapore and the United States of a Regional Emerging Disease Intervention (REDI) Center.

Eight Hours in the Philippines

Over a span of eight hours, the Philippines laid out the red carpet for US President George W. Bush. More renowned for its symbolism than for the actual benefits it could earn for the country, the state visit of the American President secured the last brick of formality that would cement the renewed alliance of the Philippines and the US in the war against terrorism.

During his visit, President Bush emphasized the deep-rooted friendship that exists between the two countries, strengthened by the new strategic alliance based primarily on security. He stressed the need for greater vigilance to secure peace and thwart “enemies” from spreading fear and chaos in the world. The US President commended the quick and decisive response of the Philippines in backing US’ stance on the war against terror and President Arroyo’s effective leadership in bringing justice to the Abu Sayyaf, recognized as international terrorists.

During the bilateral meeting at the Malacañang Palace, President Bush and President Arroyo agreed to implement the 2003 Joint Defense Assessment, a five-year plan to modernize and strengthen the military component of the country, prepared and drafted by Filipino and American military officials. The US President further pledged technical assistance, field expertise, and funding to the Philippines for the development of its military facilities.

In his address to the Philippine Congress, President Bush alluded to the responsibility of government officials to maintain and enhance the defense capability of the Philippines and to continue protecting the hard-earned democracy given by our national heroes.

Prior to the visit, Ford Motor Company announced its commitment to invest $50million and launch the Philippines as an export hub for the world. The Philippines also received a $33million USAID grant for educational assistance in conflict-affected areas in Mindanao.

Despite the incessant rhetoric on security, the US President also expressed his intentions to further negotiations on development and trade issues, emphasizing not only free trade but fair trade as well.

Ford Motor increases stake in RP

S-based Ford Motor Company will infuse an additional US$50 million into its Philippine operations. This was announced by its Chairman and Chief Executive Officer William Clay Ford Jr. during a recent visit.

The new investment, to be made over the next five years, will be used for facility upgrades, tooling and engineering costs, with the end goal of turning the country into a regional export manufacturing hub. Its Philippine plant is located in Laguna Techno Park in Sta. Rosa, Laguna.

Ford revealed that the company’s decision to invest in the Philippines was helped by the fact that the government had come up with policies favorable to the automotive industry as embodied in the country’s motor vehicle development program (MVDP).

Ford Philippines is the only company to export completely built-up vehicles to the ASEAN market, with a target shipment of 14,000 units this year. Ford exports the Lynx, Ford Escape, Mazda Tribute SUVs, and Mazda sedans. By 2005, Ford is also looking at introducing a new “compact car” model, the so-called C-1 Project, to the list of vehicles it would initially export to the ASEAN market.

The planned expansion is expected to increase the company’s manpower complement from 650 to 1,250.

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